Google’s recent decision to discontinue the use of third-party cookies has sparked concerns among marketers, with 41% citing the inability to track the right data as their biggest challenge.
The shift away from third-party cookies by Google necessitates a significant overhaul in how companies collect customer data for marketing and advertising purposes. According to a survey conducted by GetApp, 35% of marketing experts foresee a positive change resulting from this decision, while 20% anticipate negative consequences for their businesses.
Challenges and Concerns
Among the challenges identified by marketers, 41% are particularly concerned about tracking the right data, followed by 15% expressing worries about the reduced accuracy in personalised advertising. Additionally, 10% highlighted new budget allocation as a cause for concern in the wake of Google’s policy update.
A substantial 61% of marketers anticipate significant changes in their marketing spend as a result of Google’s decision, with 44% predicting an increase in expenditure ranging from 5% to 25% to achieve the same targets as in 2021.
Insights from Analysts
Eric Schmitt, Senior Director Analyst at Gartner, warns that marketers should prepare for prolonged disruption in digital advertising following the transition away from third-party cookies. This disruption is expected to persist through the first half of 2023 or longer.
With the impending phase-out of third-party cookies, organisations will need to pivot towards leveraging first-party data obtained from sources such as websites, email, social media, surveys, and CRM software. As a result, 23% of marketers plan to invest in email marketing software, 17% in analytics, and 5% in CRM software to adapt to this new landscape.
Despite the need to explore new avenues for data collection, more than half (51%) of companies remain uncertain about investing in new software solutions to address the challenges posed by Google’s cookie policy update.
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